Last week Dinosaur was alerted to an interesting shareholder in AMMB Holdings Bhd. While diligently flipping through AMMB Holdings annual report, the interesting name popped out as one of the 30 largest shareholders.
Tan Sri Chua Ma Yu has 1.11% in AMMB Holdings and is the company’s 15th largest shareholder. The shareholders list in AMMB Holdings annual report is dated June 30, 2021, but there has been little trading volume on the banking company’s stock.
Chua, the chairman of Waterfront Capital Group and controls CMY Capital, was one of the founders of RHB Bank with businessman Rashid Hussain in the early 1980’s. The last financial institution he was linked to was Malaysian Building Society Bhd (MBSB), and that was back in 2016 where he bought a 6.05% shareholding. He sold out of MBSB in May 2019.
Reports in the financial press say that Chua in MBSB’s 2013 annual report was in the list of 30 largest shareholders owning 1.61%. And it was highlighted that this entry of Chua’s was four months before Bank Negara approved the talks for CIMB Group Holdings Bhd, RHB Capital Bhd, and MBSB to merge.
Considering his understanding of the financial sector it’s not a shock that he is in AMMB Holdings which controls the AmBank Group.
Dinosaur remembers a time back then at a buka puasa event at the PJ Hilton, there was a chance meeting with some people from an oil and gas company and coincidently the company’s shares had run that day, and this was odd as it had run despite oil prices being in the pits.
When the subject came up as to what caused the interest, the company officials said it pretty chill, that their new shareholder was *drum rolls please than Chua! And if the dinosaur remembers correctly, it was something like 2% only (not something to roar about).
But that is the impact of Chua, his entry can move a share price substantially. He is in fact still one of the biggest names in corporate Malaysia, although he has been taking it easy lately. His son Chua Sai Men had briefly surfaced in Cypark Resources Bhd in 2014 but went quiet soon after. Hmmm…
Dinosaur has followed Chua when via Waterfront Capital, he was a substantial shareholder in water concessionaire Puncak Niaga Holdings Bhd but this is more than 20 years ago, when Puncak Niaga was a darling of the stock exchange and was distributing treated water to Klang Valley.
These days Chua is known as a 60% shareholder in six-star St Regis hotel in KL Sentral.
The 70-year old Chua in an interview with local paper The Star in 2016 had said, “I’m a contrarian, I get greedy when others become cautious.”
Now in AMMB’s case it is not sure if he has exited or what reasons he has to buy into the company. But what has been in the news is that Australia and New Zealand Banking Group Limited (ANZ) which has 21.68% of AMMB Holdings has been looking to sell its stake.
A few years ago AMMB Holdings and RHB Bank Bhd were in talks to merge, and part of the plan was for ANZ to sell its stake in the merged entity to Kumpulan Wang Persaraan (Diperbadankan) or known as KWAP. But when the merger with RHB did not materialize, ANZ’s sale to KWAP also went down the drain.
For years it has been in the news that ANZ will exit AMMB Holdings.
In March this year AMMB Holdings had to make a settlement of RM2.83 billion with the Malaysian government for issues with its involvement in the 1Malaysia Development Bhd disaster. Since then, there has been speculation AMMB Holdings was a strong candidate for a merger and acquisition.
Other than the embarrassment of being associated with the 1Malaysia Development mess, ANZ had also written down the carrying value of its investment in AMMB Holdings to AUD$ 850 million from AUD$1.05 billion, following the settlement with the government.
AMMB Holdings is also not exactly one of the larger banks, it ranks sixth in terms of assets, which would mean that it is likely to be swallowed up like how I swallow my meals rather than taking over other banks.
It is no secret that AMMB Holdings second-largest shareholder Tan Sri Azman Hashim who has 11.83% has been looking to sell and chill as he is now 82 years old.
While there could be a number of suitors for AMMB Holdings, Chua’s daughter Carmen is married to Tan Sri Quek Leng Chan’s son, Quek Kon Sean. The Quek family of course controls the Hong Leong business empire which includes Hong Leong Bank Bhd.
Chua is very well connected and also rubs shoulders with the family of the late gaming tycoon Tan Sri Lim Goh Tong. In 2007 Chua had acquired a 14% stake in cruise operator Star Cruises from Resorts World Bhd (Genting Malaysia Bhd) for RM1.2 billion in cash.
This time last year Chua’s CMY Capital partnered Singapore-listed property developer Aspen (Group) Holdings Ltd and businessman Iskandar Basha Abdul Kadir to manufacture and distribute rubber gloves. Chua has 25% in this venture.
Bursa Dinosaur OUT! :)